Palau Holds Presidential Election Amid U.S.-China Tensions

Palau is holding a crucial presidential election where current President Surangel Whipps Jr. faces off against former President Tommy Remengesau, amid rising geopolitical tensions with China and significant U.S. military interests. The election follows Palau's renewal of its Compact of Free Association with the U.S., which includes $890 million in economic aid over 20 years in exchange for military access. Tax reform has become a central campaign issue, with Remengesau advocating for small business tax incentives, while Whipps contends with a defamation lawsuit against a local newspaper related to his family's business. Furthermore, Palau's diplomatic ties with Taiwan are under pressure from China, which recently restricted tourist visits and allegedly conducted cyber attacks. To mitigate falling tourist numbers from China, Palau has opened direct flights to Japan and Australia. The election results could have profound implications for Palau's political landscape and its relations with both superpowers.